Supreme Court on November 11 upheld the demand of entry tax by mos for allowing goods and raw materials into their territories.
I% Court's
Observations
Entry tax does not restrict freedom of trade or other constitutional provisions on inter-state trade.
pHowever, the taxing measure should not be
discriminatory and restrict entry of goods from
other states.
The compensatory tax theory as evolved in earlier judgments has no juristic value and is over-ruled.
States are well within their right to
design their fiscal legislations to ensure that the tax burden on goods imported from other States and goods produced within the state
fall equally. Such measures, if
taken, would not contravene Article 304(a) of the Constitution.
If taxing law is non- discriminatory, it can
be said to be constitutionally valid without the legislation having to go
through
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